Rubicon Project – the sell side of programmatic ads? (RUBI)Just wondered what your take on Rubicon Project’s potential is to emerge as the dominant sell-side equivalent to TTD’s buy-side of programmatic advertising.
I remember seeing it touted as someone’s number one stock for 2020… I can’t remember where though!
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Things are starting to look a little better for them now than they did a year or two ago, for sure, particularly with the Telaria acquisition. I’m really not sure how the market will shake out with the “network” of Rubicon versus the programmatic heft and strong buyer use of The Trade Desk, though they’re both counting on growth that comes from their access to streaming video platforms. TTD is growing a lot faster and has a much better income statement, but it is also far larger and more richly valued as a result — I like that TTD is really selling access to software and data instead of trying to operate primarily as an exchange, since that seems like a tougher business to disrupt, but I expect RUBI’s much lower valuation makes it worth some research.
I agree Travis, they should be better competition for TTD since the Telaria acquisition. Q1 results weren’t terrible given the covid, P/S at around 2 looks very favorable to TTD at ~22. I like the TTD concept but bought RUBI because it looks undervalued. Hope the market agrees. Although TTD has better margins (76% vs 63% for RUBI) IMHO TTD seems expensive on most other metrics; P/S, P/B, P/E/G.
Also, I’m getting tired of the incessant pumping of TTD by Motley Fool.